Hansteen has agreed to sell its German and Dutch portfolios for €1.28bn (£1.11bn) to funds advised by The Blackstone Group and M7 Real Estate.
The price represents a premium of approximately 6% to the year end valuation, which included a valuation uplift of €34m over the 2015 valuation.
In a statement Morgan Jones and Ian Watson, joint chief executives of Hansteen, said: “This is a compelling opportunity to crystallise both the revaluation gains from these German and Dutch assets achieved by our active asset management and the gains from foreign exchange movements. The value being realised is around 30% higher than the book value at 31 December 2015 when measured in Sterling.
“The sale is in line with our long-term business and portfolio strategy of buying at a low point in the cycle, with low occupancy and rents, adding value through improved asset management and subsequently realising the investment at a higher point in the cycle.”
The announcement came alongside the industrial property group’s end of year results for 2016, which showed Hansteen’s normalised income profit increased by 29.4% to £61.1m.
In the year to the end of December the group achieved a total annual return to shareholders of 23.1p or 20.8%, with pre-tax profit of £119.9m, down from 2015’s figure of £171.4m. However, normalised total profit increased by 4.4% to £66m.
EPRA NAV per share increased by 15.9% to 128.9p, the group hiked the full year dividend by 12.4% to 5.9p per share.
Melvyn Egglenton, chairman of Hansteen said: “I am pleased to report an exceptional year for Hansteen with our portfolio and our team once again delivering record results.
“While acquisition opportunities have been limited the team has focused on growing the portfolio occupancy and rent roll resulting in the highest ever number of new lettings and lease renewals, record like-for-like rent growth and the highest ever portfolio occupancy rate.”
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